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Originally Posted by Yarcofin
My dad told me that a friend of his got into futures, but he didn't sell in time...... he ended up actually getting a train-load full of corn or wheat (whatever he ordered) delivered to the local train station and he had to take possession within 48 hours of it arriving or something.... he had to sell it at a huge loss.
So DEFINATELY double-check and make sure you sell well before the scheduled delivery!!
I don't know if this has been changed since then, I think this took place in the 80's or 90's, but definately something to consider.
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It hasn't changed. If you don't offset your position before contract expiration you'll be in a delivery situation.
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Personally I use ETFs (indexes) to trade things like Gold, Energy (Oil), etc. In this case I don't think you're owning the commodity though, it's a group of companies that produce it.
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Some ETFs are companies. Others are plays on the actual commodity. For example GDX is an ETF of Gold Miners, while GLD is actually gold.